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XRP ETFs hit 6 green months – But 2 signals warn of profit taking

source-logo  ambcrypto.com 2 h
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Ripple [$XRP] has been getting a lot of love from ETF investors lately. However, there’s two sides to every story, and traders are on the other end of the tale.

What gives?

Six months in the green for $XRP ETFs

Monthly net inflows have stayed green for half a year now, per SoSoValue. August was the biggest of the lot at $159.18 million.

September has added another $117.44 million so far. That brings total net assets to $1.77 billion.

Source: SoSoValue

Now here’s the catch.

Source: CryptoQuant

Over on the futures side, CryptoQuant’s 90-day taker CVD showed sell-dominance earlier in the month.

It’s been bleeding red ever since.

Source: CryptoQuant

Funding rates have, for the most part, been positive. However, they fell massively into the deep red for a few times since late August. A look at the numbers will show dips as low as -0.018 in mid September.

While most traders still lean long, short bets keep popping up like weeds.

$XRP active addresses rise, and so do reserves

Traders might be split, but the $XRP ledger itself has been bustling.

Active addresses rose to 29.9K, per CryptoQuant. That’s the highest in half a year, and a king’s leap from the 10.7K of mid-September. For most of June to August, the number moved between 12.5K and 17.5K.

Source: CryptoQuant

But here’s the other POV.

Reserves on Binance have also been going up, now at 2.695 billion $XRP. But what does that have to do with anything?

Source: CryptoQuant

More $XRP on exchanges means more coins to be sold. The network is awake, and there’s more supply on the sell side.

If you add the red CVD to that, holders are maybe ready to cash in on the bounce.

Where do we go from here?

First things first, a key data point to watch, is whether ETFs stay green in the following months. If that sustains, that’s steady demand.

Next, the CVD. A change back to neutral or buy-dominant would mean futures traders are finally on board.

Finally, if Binance reserves keep rising while active addresses slow, sell pressure could win out.

Final Summary

  • $XRP ETFs have been in the green for half a year now.
  • Futures CVD has turned sell-dominant and $XRP ledger activity has increased.
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